After oil hits 13-month high, energy analyst warns prices may be ‘too frothy’

SourceCNBC
SectorOil & Gas
CountryMiddle east

Oil climbed Friday, surpassing the high set earlier this week and notching a fresh 13-month peak. West Texas Intermediate crude hit $59.74 a barrel on Friday, its highest level since January 2020, a promising sign as the industry grapples with depressed demand during the coronavirus pandemic. However, after a 23% rally so far this year, one top energy expert warns the commodity may have gotten ahead of itself. "My personal view … is that the price is too frothy, and that it doesn't warrant a WTI price of greater than $58," Regina Mayor, global and U.S. head of energy for KPMG, told CNBC's "Trading Nation" on Thursday. Mayor is seeing positive signs that the market conditions back higher prices than the lows seen last year, though. Lower demand and fears of prolonged lockdowns had in April 2020 turned one crude oil futures contract negative for the first time in history. "Supply is coming down. … We're all surprised by how quickly it's taken to draw...read more...